Clairvest Group Inc.
TSX : CVG

August 14, 2012 17:22 ET

Clairvest Reports Fiscal 2013 First Quarter Results

TORONTO, ONTARIO--(Marketwire - Aug. 14, 2012) - Clairvest Group Inc. (TSX:CVG) today reported results for the first quarter ended June 30, 2012. (All figures are in Canadian dollars unless otherwise stated)

Highlights

  • June 30, 2012 book value was $322.9 million or $21.35 per share versus $20.93 per share at March 31, 2012. Cash or near cash represented 30.5% of the June 30, 2012 book value, or $6.51 per share
  • Net income for the quarter was $9.6 million or $0.64 per share
  • Clairvest reached a court-approved settlement with certain parties with respect to a $10 million loan advanced during fiscal 2006 and 2007 and written off during fiscal 2007. Clairvest recorded into income $7.75 million on this settlement which was received subsequent to quarter end
  • Subsequent to quarter end, Clairvest paid an annual ordinary dividend of $1.5 million, or $0.10 per share, and a special dividend of $1.7 million, or $0.1093 per share, which in aggregate represent 1% of the March 31, 2012 book value

Clairvest's book value was $322.9 million or $21.35 per share, at June 30, 2012, compared with $20.93 per share at March 31, 2012. The increase in book value per share was attributable to net income for the quarter of $9.6 million, or $0.64 per share, net of dividends declared totaling $0.2093 per share, or 1% of the March 31, 2012 book value.

Net income for the first quarter of fiscal 2013 included the $7.75 million settlement proceeds recorded as a result of the previously disclosed court-approved settlement reached with certain parties with respect to a $10 million loan advanced in two tranches of $5 million in each of December 2005 and May 2006. The funds recovered on this settlement were received subsequent to quarter end. Clairvest continues to seek additional recoveries against parties that are not part of this settlement.

"Fiscal 2013 is off to a good start. Our portfolio companies continued to grow during the first fiscal quarter and we continue to seek opportunities in our chosen industries," said Ken Rotman, Co-Chief Executive Officer and Managing Director of Clairvest.

Subsequent to quarter end, Clairvest paid an annual ordinary dividend of $0.10 per share and a special dividend of $0.1093 per share, such that in aggregate, the dividends totaled to $0.2093 and represent 1% of the March 31, 2012 book value. Both dividends were paid on July 26, 2012 to common shareholders of record as of July 9, 2012 and are eligible dividends for Canadian income tax purposes.

Summary of Financial Results - Unaudited
Financial Performance Measures - Quarters ended June 30 2012 2011
($000's, except per share amounts) $ $
Net realized gains (losses) on corporate investments (14) 577
Net changes in unrealized gains on corporate investments 3,189 833
Net income 9,609 1,254
Basic net income per share 0.64 0.08
Fully diluted net income per share 0.63 0.08
Financial Condition Measures June
2012
March
2012
($000's, except per share amounts) $ $
Total assets 351,424 338,424
Total cash, cash equivalents and temporary investments(1) 98,394 97,553
Total corporate investments 188,978 187,876
Total liabilities 28,498 21,997
Book value 322,926 316,427
Book value per share 21.35 20.93
(1) Excludes restricted cash and temporary investments

Clairvest's first quarter fiscal 2013 financial statements and MD&A are available on the SEDAR website at www.sedar.com and on the Clairvest website at www.clairvest.com.

About Clairvest

Clairvest Group Inc. is a private equity investor which invests its own capital, and that of third parties through the Clairvest Equity Partners ("CEP") limited partnerships, in businesses that have the potential to generate superior returns. In addition to providing financing, Clairvest contributes strategic expertise and execution ability to support the growth and development of its investee partners. Clairvest realizes value through investment returns and the eventual disposition of its investments.

Forward-looking Statements

This news release contains forward-looking statements with respect to Clairvest Group Inc., its subsidiaries, its CEP limited partnerships and their investments. These statements are based on current expectations and are subject to known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Clairvest, its subsidiaries, its CEP limited partnerships and their investments to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include general and economic business conditions and regulatory risks. Clairvest is under no obligation to update any forward-looking statements contained herein should material facts change due to new information, future events or otherwise.

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